- Cardano price has been accumulating for over a month, suggesting a volatile move is imminent.
- This accumulation phase appears to be similar to that between November 18, 2020 and January 5, 2021.
- ADA could rise to $ 8.40 even if part of the fractal is played off.
Cardano price has been hovering above a critical support barrier for over a month and showing signs of an upward move. This overload could turn into a massive bullish breakout, propelling ADA to new all-time highs.
Here are two reasons the optimism surrounding Cardano and why it could hit $ 8 in the coming weeks.
The Alonzo upgrade brings out dApps on the Cardano blockchain
The much anticipated Alonzo upgrade was successfully implemented on September 12th via a hard fork. This improvement brings smart contracts and a wealth of opportunity, all of which have been eagerly anticipated.
While Cardano is sometimes referred to as the so-called “Ethereum killer”, it never had skills that allowed it to play on the same field. However, developers can now start building dApps, decentralized exchanges (DEX), and algorithmic stablecoins that could evolve into a DeFi ecosystem similar to Ethereum.
This development is made possible by the Alonzo upgrade, which has firmly implemented the core components. In addition, thousands of developers are already taking the Plutus Pioneer course, which enables them to build a new ecosystem on Cardano.
One example of this is ADALend, an ADA blockchain-based lending platform that will “facilitate the new wave of flexible financial markets by serving as the basis for instant loan approval, automated trustworthy collateral and liquidity”.
Similarly, the PlutuSwap platform is ready to launch its automated market maker (AMM), a decentralized exchange (DEX), on the Cardano platform. It aims to set a standard for the ADA DeFi ecosystem, be it UI / UX friendliness or the simplicity and reliability of the Cardano blockchain.
The announcement continues
When fully functional, PlutuSwap.com will be a decentralized exchange based on the Extended Automated Market Maker (EAMM) protocol and powered by the UTXO mechanism of the Cardano Blockchain Infrastructure.
While this is just the beginning, the burgeoning ecosystem will attract more users to the Cardano blockchain, improve their prospects, and bring in tons of capital.
Regardless of the tech, if an asset’s fundamentals are strong, the price will find a way to penetrate the noise and move higher. However, ADA is showing an accumulation fractal that, with its recent appreciation as a tailwind, could propel it to new all-time highs.
The Cardano price accumulation fractal indicates a massive upturn
The Cardano price accumulated for about 38 days between late November 2020 and early January 2021, followed by a 600% bull run. That attempt pushed ADA from $ 0.10 to $ 1.20.
The Cardano price has entered another phase of consolidation since mid-August, which looks similar to the one mentioned above. If a similar structure continues to unfold and ADA breaks out of the traffic jam, it will trigger an exponential rally.
However, confirmation of that spike will come after Cardano price hits a pivotal closing price above its all-time high of $ 3.10.
Assuming ADA can replicate a quarter of the lead of 2021, that is, a 150% advance would forecast a target of $ 6.
A 300% upswing would push the Cardano price through the 261.8% Fibonacci expansion level at $ 8.41 and place the so-called “Ethereum killer” at $ 9.50 per token.
ADA / USDT 12-hour, 9-hour charts
While optimism about Cardano price seems logical after the recent Alonzo upgrade, things could quickly go wrong if big crypto decides to tank up. If bitcoin price starts to crash sharply like on September 7th or May 19th, it would cause all of the altcoins to do the same.
If ADA breaks below the range lows of $ 1.68 it would set a lower low and invalidate the bullish thesis. While a rebound from this downturn is plausible, a massive shakeout would put investors off and delay the recovery.
If so, ADA could hit the next support floor at $ 1.50 and the July 20th low at $ 1.